By: Nile post

Ugandan police have said they have  recovered Shs900 million ($240,000) from 56 suspects implicated in elaborate gold scams that have been targeting local and foreign investors.

The recovery, made over a seven-month crackdown, follows investigations into 50 reported cases since January 2025, highlighting the growing scale of fraud in Uganda’s mineral sector.

Assistant Commissioner of Police Ceaser Tusingwire, the commander of the  Police Mineral Protection Unit (PMPU), revealed the findings at a media briefing in Kampala.

He said the suspects were operating in Airbnb apartments, makeshift refineries, and rented office spaces, often presenting themselves as legitimate dealers.

“These efforts have resulted in arrests and prosecutions of offenders involved in mineral-related crimes, as well as recovery of valuable assets including money and motor vehicles,” Tusingwire said.

Gold remains Uganda’s top export earner, bringing in $3.8 billion (Shs14.4 trillion) in 2024, according to the Bank of Uganda. But the booming trade has also become fertile ground for fraudsters. Police records indicate that reported scam cases have increased by more than 35% compared to 2023, when 37 cases were registered.

Losses from scams and related fraud are estimated at over Shs5 billion ($1.3 million) this year alone.

Victims have included Ugandan entrepreneurs as well as foreign investors from Kenya, the UAE, Turkey, and several European countries.

Of the 50 cases registered, 10 were cyber-related. These involved fake websites posing as legitimate gold trading companies. Investigators said such operations are highly complex, often involving international criminal networks, forged company documents, and fake export licenses.

“These are not small-time fraudsters. We are dealing with organized syndicates that include foreign nationals, unlicensed accountants, and brokers who fabricate paperwork to convince investors,” an investigator said.

The scams often take several months to execute. Victims are shown fake mineral samples, company registrations, and even licenses that appear to have been issued by the Uganda Revenue Authority (URA) or the Ministry of Energy and Mineral Development.

Some investors, police say, are themselves complicit in money laundering, which explains why many are reluctant to file formal complaints even after losing millions of shillings.

Colonel Edith Nakalema, head of the State House Investors Protection Unit in a statement, urged both local and international investors to perform due diligence through the official Investors Protection Portal.

“Reporting scams early enables swift action. We must protect Uganda’s image as an investment destination,” she said, noting that fraud cases not only hurt individuals but also damage confidence in the country’s mineral sector.

Meanwhile, David  Ssebagala, an inspector with the Ministry of Energy and Mineral Development, warned that companies implicated in fraudulent activities risk losing their licenses.

“The ministry has the authority to revoke licenses where there is evidence of non-compliance. No investor should cut corners,” he emphasized.

Beyond fraud, Uganda continues to lose billions to illegal mining and smuggling. Officials estimate that mineral smuggling alone cost the country Shs2 trillion ($526 million) in lost tax revenue in 2024. Gold, tin, and iron ore are among the most smuggled minerals, with cartels exploiting porous borders and weak monitoring systems.

Tusingwire pledged that police will intensify surveillance, enhance cyber investigations, and work with the Financial Intelligence Authority to disrupt these networks.

“Uganda’s mineral wealth must benefit Ugandans, not criminal syndicates. This recovery of Shs900 million is just the beginning,” he said.